Please answer Requirement 1 and Requirement 2 as the format of the question. Thank you

Pure Grow Inc., based in Burlington, lowa, sells high-end fertilizers. Pure Grow has two divisions: - North Italy mining division, which mines potash in northern Italy - US processing division, which uses potash in manufacturing top-grade fertilizer The processing division's yield is 50% : It takes 2 tons of raw potash to produce 1 ton of top-grade fertilizer. Although all of the mining division's output of 16,000 tons of potash is sent for processing in the United States, there is also an active market for potash in Italy. The foreign exchange rate is 0.80 Euro =$1 US. The following information is known about the two divisions: (i) (Click the icon to view the information.) Required Information 1. Compute the annual pretax operating income, in US dollars, of each division under the following transfer-pricing methods: (a) 150% of full cost and (b) market price. 2. Compute the after-tax operating income, in U.S. dollars, for each division under the transfer-pricing methods in requirement 1. (Income taxes are not included in the computation of cost-based transfer price, and Pure Grow does not pay U.S. income tax on income already taxed in Italy.) 3. If the two division managers are compensated based on after-tax division operating income, which transfer-pricing method will each prefer? Which transfer-pricing method will maximize the total after-tax operating income of Pure Grow? 4. In addition to tax minimization, what other factors might Pure Grow consider in choosing a transfer-pricing method? Requirement 1. Compute the annual pretax operating income, in US dollars, of each division under the following transfer-pricing methods: (a) 150% of full cost and (b) market price. Begin by computing the operating income for the North Italy mining division under each method, and then calculate the operating income for the US processing division under each method. Requirement 2. Compute the after-tax operating income, in US dollars, for each division under the transfer-pricing methods in requirement 1. (Income taxes are not included in the computation of cost-based transfer price, and Speedy Grow does not pay US income tax on income already taxed in Italy.) Begin by computing the after-tax operating income for the North Italy mining division under each method, and then calculate the after-tax operating income for the US processing division under each method. (Enter all amounts in US dollars.) Requirement 4. In addition to tax minimization, what other factors might Speedy Grow consider in choosing a transfer-pricing method? The following are factors that executives consider important in transfer pricing decisions: External market recognition Management motivation Performance evaluation Pricing and product emphasi Proximity to customers The following factors are specifically related to multinational transfer pricing: (Leave unused cells blank.) Competitive position of subsidiaries in their respective markets Employee satisfaction Overall income of the company Proximity to customers Restrictions on dividend or income-related payments to parties outside their national borders